RVR800
10th Dec 2001, 15:15
Under the latest review, codenamed the Future Size and Shape Project, BA is considering cutting the workforce by up to 10,000 by shedding pilots, cabin crew, managers, overseas workers and engineers
Up to half of BA's routes to European destinations could be axed, with those from British regional centres to European cities looking particularly vulnerable.
BA faces strong competition from budget airlines such as Easyjet and Ryanair on routes to many European destinations.
The paper quotes a senior BA source as saying: "Should we really be flying to all these places where we do not make money - is it because BA wants to paint the world red, white and blue or is it behaving like a business? These issues have to be addressed and we're looking at the totality of the business".
The review will run until February 2002, the BA spokesman said.
Losses ahead
Airline analysts are expecting BA to report losses of about £750m for its current financial year, which ends in April 2002. It would be the airline's first loss since its privatisation in 1987.
Passenger numbers have fallen for 10 consecutive months, with the latest figures for November showing a 17.8% decline on November 2000.
BA chief executive Rod Eddington has said he is confident that BA can survive the current crisis, as it had £1.1bn in cash reserves and could draw on a further £800m.
Up to half of BA's routes to European destinations could be axed, with those from British regional centres to European cities looking particularly vulnerable.
BA faces strong competition from budget airlines such as Easyjet and Ryanair on routes to many European destinations.
The paper quotes a senior BA source as saying: "Should we really be flying to all these places where we do not make money - is it because BA wants to paint the world red, white and blue or is it behaving like a business? These issues have to be addressed and we're looking at the totality of the business".
The review will run until February 2002, the BA spokesman said.
Losses ahead
Airline analysts are expecting BA to report losses of about £750m for its current financial year, which ends in April 2002. It would be the airline's first loss since its privatisation in 1987.
Passenger numbers have fallen for 10 consecutive months, with the latest figures for November showing a 17.8% decline on November 2000.
BA chief executive Rod Eddington has said he is confident that BA can survive the current crisis, as it had £1.1bn in cash reserves and could draw on a further £800m.